Ecolab Inc. (ECL) Stock Valuation — PE Analysis
Chemicals - Specialty · NYSE
Current Price
$278.60
PE Ratio (TTM)
37.4x
Intrinsic Value
$383.02
+27.3% margin of safety
COMPETITIVE MOAT
↑Sticky Customer Relationships
Ecolab's integrated solutions and on-site service create deep customer dependencies. Switching costs are high due to specialized equipment and training.
↑Brand Reputation & Trust
The Ecolab brand is synonymous with hygiene and safety in critical industries. This trust is built over decades and difficult for competitors to replicate.
↑Proprietary Technology & Data
Investments in digital platforms and data analytics provide unique insights for customers. This enhances efficiency and compliance, creating a technological advantage.
INVESTMENT RISKS
↓Intensifying Competition
While moats exist, the specialty chemicals sector sees new entrants and aggressive pricing from established players. This can pressure margins.
↓Raw Material Cost Volatility
Fluctuations in the cost of key raw materials can impact profitability. Ecolab's ability to pass these costs on is not always guaranteed.
↓Regulatory & Environmental Changes
Evolving environmental regulations and product compliance requirements can necessitate costly adjustments. Non-compliance carries significant penalties.
Base case
ECL base case PE valuation
A base case PE valuation for ECL estimates a fair value of about $383.02 per share, against a current price of $278.6. The model assumes 14.7% annual earnings growth, a 37x target PE multiple, and a 10% discount rate.
Intrinsic Value
$383.02
Margin of safety
+27.3%
Expected annual return
+6.6%
Base case assumptions: 14.7% annual earnings growth, 37x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-29.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the ECL PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Ecolab Inc. respond.
Open PE Calculator for ECLCompany Overview
Ecolab Inc. provides water, hygiene, and infection prevention solutions and services in the United States and internationally. The company operates through four segments: Global Water, Global Institutional & Specialty, Global Pest Elimination, and Global Life Sciences. The Global Water segment offers water treatment and process applications, and cleaning and sanitizing solutions to manufacturing, food and beverage processing, transportation, chemical, primary metals and mining, power generation, global refining, petrochemical, pulp and paper industries. The Global Institutional & Specialty segment provides cleaning and sanitizing products to the foodservice, healthcare, hospitality, lodging, government, education and retail industries. The Global Pest Elimination segment provides pest elimination services to detect, prevent, and eliminate pests comprising rodents and insects in full-service and quick-service restaurants, food and beverage processors, hotels, grocery operations, and other commercial segments, including education, life sciences, and healthcare. The Global Life Sciences segment provides cleaning and contamination control solutions to pharmaceutical and personal care manufacturers. It offers its products under the Ecolab, Kay, Purolite, and Bioquell brand names. The company sells its products through field sales and corporate account personnel, distributors, and dealers. Ecolab Inc. was founded in 1923 and is headquartered in Saint Paul, Minnesota.
Financial Metrics — ECL PE Stock Valuation Data
PE Ratio (TTM)
37.4x
PEG Ratio
92.49
Earnings Yield
2.68%
ROE (TTM)
21.7%
Revenue/Share (TTM)
$58.34
Dividend Yield
1.02%
Debt/Equity
0.93x
Frequently Asked Questions
What is the PE ratio of ECL?
The trailing twelve-month PE ratio of ECL reflects how much investors pay per dollar of Ecolab Inc.'s earnings. This metric is most useful when compared to Chemicals - Specialty peers and the company's own historical range.
Is ECL overvalued based on PE ratio?
ECL's PE of 37.4x combined with a PEG ratio of 92.49 provides a growth-adjusted perspective. A PEG above 2.0 suggests ECL may be richly valued even accounting for growth. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Chemicals - Specialty, a DCF analysis may be more appropriate.
How do I value ECL stock using PE ratio?
To value Ecolab Inc. using PE: (1) Compare the current PE (37.4x) against the Chemicals - Specialty median to assess relative pricing, (2) check the PEG ratio (92.49) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of ECL?
ECL's PEG ratio is 92.49, calculated by dividing the PE ratio (37.4x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for ECL stock valuation?
PE ratio gives a quick relative read — how ECL is priced versus Chemicals - Specialty peers. DCF provides an absolute value based on projected free cash flows. For ECL, with a strong ROE of 21.7%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See ECL DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Basic Materials valuationsP/E and DCF value ECL with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.